National Bank of Georgia President Natia Turnava says the Prime Minister’s new initiative to strengthen price monitoring in the retail sector is an important step that will help maintain a low-inflation environment and reinforce price stability. Speaking to the Public Broadcaster, Turnava emphasized that the initiative aims to make pricing processes more transparent and preventive, ensuring fair competition and better consumer protection.
According to Turnava, price stability is the National Bank’s core mandate, and its main tool is the monetary policy rate. However, she noted that relying solely on interest-rate policy becomes challenging when competition is distorted in certain segments of the small Georgian economy, or when price markups appear unjustified.
Turnava stressed that the government’s initiative aligns with international practice and relevant directives and does not interfere with free-market principles. She added that the state must act whenever there are signs of unfair competition, cartel agreements, or illogical price increases, and that the new approach will contribute to better management of inflation expectations and help preserve a stable pricing environment.
Prime Minister Irakli Kobakhidze recently stated that food prices in Georgia are significantly higher than in Europe, primarily due to excessive markups by distribution companies and retail chains. He announced intensified work with market players, instructed law-enforcement agencies to thoroughly review the issue for potential criminal violations, and said the government is ready to use antimonopoly mechanisms if needed. Kobakhidze also appealed to Parliament to create a special commission to assess the situation using parliamentary oversight tools.
